File away these document storage ideas

Tick tock. Tick tock. If you haven't filed your taxes, that sound is getting a little louder each day.

But if you have — and hopefully it wasn't too painful — what do you do with your records?

"IRS rules vary as to how long records must be retained, depending on the individual taxpayer's circumstances and the purpose for which the records are needed," says Richard Smith, a Washington D.C.-based attorney and document expert. "But a safe general rule of thumb is to maintain individual tax returns and related financial records for seven years."

Receipts. Bank statements. Tax statements. And we live in an increasingly electronic world, as evidenced by the nearly 100 million returns which will be filed to the IRS by internet this year.

How do we store all of it?

The paper route

For starters, we really like this Project Container by Steelcase ($31, steelcase.com). Equipped with rails for hanging file folders, it's big enough for a few years worth of records or, if you've got a lot, small enough to compartmentalize one year. It's sturdy, holding up to 12 pounds of files, and stackable.

If a cabinet is more your speed, Crate & Barrel (crateandbarrel.com) has two excellent options. The Landon filing cabinet ($299) is done in an Arts and Crafts-style and the oak finish is as suitable for living rooms as offices. For those preferring a more straightforward approach, their 3-Drawer metal cabinet is less expensive ($149) and comes on wheels for easy moving (something you'll appreciate if you've ever tried to lift a full cabinet).

The electronic route

First a public service announcement: If you don't regularly back up your computer, you will spend a large sum of money paying a professional retrieval service to (hopefully) recover your data. Someday your computer will fail. The only question is how much you will lose in the process.

Smith agrees.

"In the electronic age we are now in, everything from tax returns to family photographs is stored electronically," he says. "Losing important documents, or treasured memories, can be devastating. And while post-disaster, specialized recovery options exist, they are prohibitively expensive for most people."

Now, with that in mind, what should you do to keep separate copies of important electronic records like your tax returns?

The easiest and cheapest solution can be found at any office supply or big box store — blank CDs. We've used Verbatim CD-Rs in the past to good effect ($13-20, package of 100). Simply store them in a cool, dry place after you've burned your data onto one.

For a bigger (and more stylish solution), we've been impressed by LaCie's Rugged line of hard drives. Offering USB or FireWire connectivity, it's surrounded by a shock-resistant orange sleeve and a protective aluminum shell. The smallest model holds 320 GB of data and is small enough to fit in your pocket.